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Simple English definitions for legal terms
BIOCOB
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A quick definition of BIOCOB:
Term: BIOCOB
Definition: BIOCOB means "buyer in the ordinary course of business" in the law of secured transactions. This means that if someone buys something in good faith, without knowing that someone else has a right to it, and they buy it from someone who usually sells that thing, then they are a BIOCOB. For example, if someone buys a car from a car dealership, and they didn't know that the car was stolen, then they are a BIOCOB.
A more thorough explanation:
Definition: In the law of secured transactions, BIOCOB refers to a “buyer in the ordinary course of business.” There are certain elements that a buyer must meet to qualify as a BIOCOB. The buyer must purchase particular goods in good faith, without knowledge that the sale violates another individual's rights in the goods, and the buyer must buy the goods in the ordinary course of business from someone who sells that particular type of goods.
Example: Philko Aviation, Inc. v. Shacket 462 U.S. 406 103 S.Ct. 2476
Explanation: In this case, Philko Aviation purchased an airplane from a dealer who had obtained the plane from a previous owner who had defaulted on a loan. The previous owner's lender claimed that it had a security interest in the plane and sued Philko Aviation to recover it. The court found that Philko Aviation was a BIOCOB because it had purchased the plane in good faith, without knowledge of the lender's security interest, and from a dealer who regularly sold airplanes. Therefore, Philko Aviation was entitled to keep the plane, and the lender's claim was denied.